Historic high-speed rail project to connect Quebec City and Toronto
February 2025On 19 February 2025, Prime Minister Justin Trudeau announced the development of a high-speed rail network, named Alto, connecting Quebec City and Toronto.[1] The Government of Canada awarded a contract for a 1,000-km (621-mile) high-speed passenger rail project between the cities to a group led by the Caisse de Depot et Placement du Quebec.[2] The ambitious project aims to revolutionise intercity travel in Canada by providing a modern, efficient, and sustainable transportation alternative. According to PM Trudeau, it will be “the largest infrastructure project in Canadian history”.[3]
Historical context and evolution
The concept of high-speed rail in Canada has been under discussion for decades. In July 2021, the federal government initiated the procurement process for a high-frequency rail corridor between Toronto and Quebec City, envisioning trains operating at speeds up to 200 km/h.[4] This initiative aimed to enhance service reliability and reduce travel times by dedicating tracks exclusively for passenger use, thereby alleviating congestion caused by shared tracks with freight trains.
Travel times
The Alto high-speed rail network will span approximately 1,000 km, connecting key cities including Toronto, Peterborough, Ottawa, Montreal, Laval, Trois-Rivières, and Quebec City.
Currently, the drive between Montreal and Toronto takes approximately five to six hours depending on traffic conditions. Flights between the two cities take around one hour and 15 minutes, but when factoring the time spent at airports for security and boarding, the time can easily extend to three or four hours. The proposed high-speed rail will cut that travel time down to just three hours, offering a much more predictable and time-efficient option.
Although rail routes already exist between the cities that will be on the Alto rail line, the high-speed rail will significantly decrease travel time. Alto has estimated that travellers can save between one to two hours.[5]
Project details and uncertainty
In 2024, a consortium called Cadence was chosen to lead the Alto project. It includes Caisse de Depot et Placement du Quebec’s (CDPQ) infrastructure unit along with engineering firms AtkinsRealis Group Inc. and Systra SA, and transportation companies Groupe Keolis SAS, Air Canada and SNCF Voyageurs.
CDPQ has built an expertise with rail systems as the pension fund is currently building an C$8 billion light rail system in Montreal, known as the Réseau Express Métropolitain.[6]
An initial $3.9 billion (CAD) has been assigned by the government for design and development of the project. This work will include selecting the precise route and placement of stations, regulatory work and consultations.
No dates were provided for the project’s completion, nor details on the total expected cost of construction, beyond the design works. However, based on information currently available and high-level studies, it is estimated that the project will be around $60 – 80 billion (CAD).[7]
According to the project website[8], Alto is currently between the procurement phase and the co-development phase of the project. Given this, and the fact that Canadians will have an election soon, it seems unlikely that this project will be completed anytime soon. Further, while there is uncertainty regarding the completion, there is also an uncertainty surrounding the future of the project as a whole. With a potential change of government on the table, even if the project does go ahead, it may look very different as private sector finance could have a much more significant role.
Second, there seems to be some ambiguity about the route and stations. It has not been confirmed whether existing stations will be used (Union Station in Toronto, Gare Central in Montreal) or whether entirely new stations will need to be constructed to suit the needs of the new dedicated rights of way and overhead line electrification requirements. That decision could be hugely significant for development in the cities served. Equally, it would have a huge impact on project cost and timescales.
Looking forward, it will be interesting to see what procurement route is adopted for the project. Major infrastructure projects in Canada (metros, LRTs, heavy rail) have typically been procured at provincial or municipal level and have adopted a variety of approaches in recent years, both as regards split up of construction packages (and the proportion of project value and extent of integration risk carried by a single contractor / consortium) and form of contract (e.g. alliancing, progressive design-build). It remains to be seen whether or how the federal government will adopt best practice from the provinces concerning the procurement of rail and other infrastructure.
Potential impact on Canada
Canada is the only G7 country without some form of high-speed rail.[9] The Alto project is poised to have a transformative effect on its transportation infrastructure. By providing a reliable and efficient alternative to car and air travel, it is expected to alleviate congestion on highways and at airports, leading to reduced travel times and enhanced economic connectivity between major urban centres.
The project is also anticipated to create numerous employment opportunities during both the construction and operational phases, contributing to economic growth. A government statement said the project will stimulate the economy, “boosting GDP by up to $35 billion annually, creating over 51,000 good-paying jobs during construction.”[10]
Additionally, the electrification of the rail network aligns with Canada’s environmental goals by promoting sustainable transportation options and reducing greenhouse gas emissions.
Conclusion
In summary, the Alto high-speed rail project represents a significant advancement in Canada’s transportation landscape, promising to enhance connectivity, stimulate economic development, and support environmental sustainability. While the announcement kicks off the very start of the process, Alto is still a very long way from shovels in the ground (or anything approaching a constructable design). Despite this, it will be interesting to see how the project progresses in the future.
[1] Canada is getting high-speed rail | Prime Minister of Canada
[2] CDPQ, Systra Win Bid to Build Canada High-Speed Rail Project
[3] Canada announces first high-speed rail: Toronto to Quebec City
[4] Feds set to begin procurement process for Toronto-Quebec City high-frequency rail corridor | Globalnews.ca
[5] Discover the Project’s Features and Many Benefits – Alto
[6] Price Tag for CDPQ’s Montreal Rail Line Soars to $6 Billion – Bloomberg
[7] Canada announces first high-speed rail: Toronto to Quebec City and CDPQ, Systra Win Bid to Build Canada High-Speed Rail Project
[9] High-speed rail line with 300 km/h trains will run between Toronto and Quebec City, Trudeau announces | CBC News
[10] Canada is getting high-speed rail | Prime Minister of Canada
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